The measure authorized the issuance of a $100,000,000 bond for the stated purposes of reconstructing and rehabilitating highways, bridges and facilities related to ports, harbors, marine transportation, freight and passenger railroads, aviation and transit and would match an estimated $154,000,000 in federal and other funds.[1]

Text of measure

Do you favor a $100,000,000 bond issue for reconstruction and rehabilitation of highways and bridges and for facilities or equipment related to ports, harbors, marine transportation, freight and passenger railroads, aviation and transit, to be used to match an estimated $154,000,000 in federal and other funds?

Background

The election that took place in Maine on November 5, 2013 is known as a referendum election. According to the Maine Bureau of Corporations, Elections and Commissions, "Referendum Elections are held to provide Maine’s citizens an opportunity to vote on People’s Veto Referenda, Direct Initiatives of Legislation (i.e. Citizen Initiatives), Bond Issues, other referenda proposed by the Legislature, and Constitutional Amendments. Referendum elections are an important part of the heritage of public participation in Maine."[1]

Fiscal note

The state's treasurer published the following information in an official statement made regarding Maine's general bond obligations:[1]

The following is a summary of general obligation bond debt of the state of Maine as of September 30, 2013.

Bonds outstanding (Issued & Maturing through 2022):

Fund

Principal

Interest

TOTAL

Highway Fund

$107,505,000

$17,407,008

$124,912,008

General Fund

$239,665,000

$35,538,895

$275,203,895

TOTAL

$347,170,000

$52,945,903

$400,115,903

9/30/2013 Unissued Bonds Authorized by Voters: $104,577,809

Unissued Bonds Authorized by the Constitution and Laws: $99,000,000

Total Authorized but Unissued Bonds: $203,577,809

The total amounts that must be paid in the present fiscal year for bonded debt already outstanding (for FY2014): $98,183,857

Since voters approved all five bond measures and each was issued for the full statutory period authorized, an estimate of the total interest and principal that will be paid is $182,390,000, representing $149,500,000 in principal and $32,890,000 in interest.

Out of the total bond amounts that were on the ballot, Proposal 3’s amount was 66.89% of the total. The following is a comparative table of all five bond measures:

Measure

Amount

Percentage of Total

Question 1

$14,000,000

9.36%

Question 2

$15,500,000

10.37%

Question 3

$100,000,000

66.89%

Question 4

$4,500,000

3.01%

Question 5

$15,500,000

10.37%

Total:

$149,500,000

100.00%

Distribution

Proceeds from the sale of these bonds would be administered by the Department of Transportation for the following purposes:

Highways – Forty-four million dollars ($44,000,000) would be expended to reconstruct or rehabilitate state highways that have been designated as Priority 1, 2 or 3 by the Department of Transportation in accordance with the state statute (23 M.R.S. § 73(7)) that requires the Department to establish priorities, customer service levels and goals for capital improvements to the State’s public highways. Specific projects are identified in the Department’s Work Plan, which is published every year and is available at www.mainedot.gov. It is anticipated that these bond proceeds would make the State eligible for approximately forty-eight million dollars ($48,000,000) in federal matching funds.

Secondary roads – Five million dollars ($5,000,000) would be used to repair secondary roads in partnership with municipalities pursuant to the existing Municipal Partnership Initiatives program described on the Department’s web site at www.maine.gov/mdot/csd/mlrc/mpi.htm, and the Secondary Road Program established in statute (23 M.R.S. § 1803-C). Both programs generally require municipalities to contribute 50% or more of the project costs. Accordingly, these bond proceeds are expected to be matched by approximately five million dollars ($5,000,000) in local funds from the participating municipalities.

Bridges – Twenty-seven million dollars ($27,000,000) would be expended to replace or rehabilitate existing bridges. Specific projects are outlined in the Department’s Work Plan, as noted above. These funds are expected to make the State eligible for approximately $30,000,000 in federal funds.

Multi-modal projects – Twenty-four million dollars ($24,000,000) would be spent on a variety of projects, including facilities and equipment related to ports, harbors, marine transportation, aviation, railroads (both passenger and freight), and transit (public transportation), as well as acquisition of property and capital improvements at the International Marine Terminal in Portland. The investment of these bond proceeds is expected to generate up to fifty-two million dollars ($52,000,000) in federal funds and up to nineteen million dollars ($19,000,000) in local and private funds.[5]

Organizations

Arguments

State government officials provided the following arguments in favor of Question 3:

House Minority Leader Kenneth Fredette (R-25) said, “I’m glad we were able to work out a responsible bond package that all parties agreed on. Hopefully this bipartisan compromise sets a new tone for relations at the state House.”[11]

Assistant Senate Majority Leader Anne Haskell (D-9) said, "A safe and strong transportation network is the foundation of a growing economy everywhere in our state. Investing in our roads and bridges will create jobs now in the construction industry, and provide a strong infrastructure to prepare our state for the future.”[8]

Governor Paul LePage (R) said, “Infrastructure projects create good-paying jobs in the construction industry, and our roads, bridges and ports are important economic drivers that help attract and retain jobs. We are improving our transportation network, and we are putting Mainers back to work."[12]

State Representative Ann Peoples (D-125) noted, "Our roads need attention. They get poor grades from the American Society of Civil Engineers, which also found that their poor condition costs Maine motorists $246 million annually in additional vehicle repairs and operating costs. That equates to $245 per motorist -- real money out of household budgets."[13]

"Maine has more highway miles than any other state in New England," but has "the lowest level of funding per mile." Thirty-three precent of roads are in "poor or mediocre condition" and 33% of bridges are "structurally deficient or functionally obsolete," according to the American Society of Civil Engineers.

In Maine, "the average driver" spends $300 per year on "vehicle repairs" caused by "poor road conditions," according to the Maine Better Transportation Association. As an aggregate, this costs the people of Maine, $301 million annually.

In 2011, 136 traffic fatalities occurred in Maine. In 33% of these accidents, road conditions were a major factor.

Media editorial positions

Support

Bangor Daily News said, "Transportation investments are a good use of the state’s bonding capacity. The return on investment — both short-term in the form of construction jobs and long-term in the form of lasting improvements on which the state’s economy will depend — is clear."[16]

The Forecaster said, "We urge voters to say yes to all five bond issues on Nov. 5."[17]

Portland Press Herald said, “The bond would provide a much-needed injection of life into Maine’s transportation infrastructure, which a report by the American Society of Civil Engineers gives a C-minus overall. Specifically, the report gives Maine roads a D... Voters should approve the five bond questions, each of which represents worthwhile projects that are long overdue... What Maine can’t afford is to fall behind on the investments that will help the economy move forward.”[18]

Path to the ballot

Special session

Governor Paul LePage (R) agreed to sign off on the bonds in August 2013. The delay in signature was caused by a stalemate between the governor and the legislative majority party, the Democrats. Democrats supported the transportation bond, but wanted to ensure that state borrowing included money for other sectors, such as education. After the two disputing parties agreed on $150,000,000 in bonds, LePage called for a special session to approve the measures for the ballot .[7][19]

Order of questions

On August 30, 2013, Secretary of State Matthew Dunlap (D) and Attorney General Janet Mills (D) determined the order of the bond questions for the November 2013 ballot selecting the measures at random.[20] Dunlap explained the importance of order of measures on the ballot, saying, “If you have a lot of questions, there is an anecdotally demonstrated history of ballot fatigue. With a five question ballot, I know there’s always concern about being Question 1 versus Question 5 because of that sort of historic precedent that the further down the ballot you get, the more of a struggle it is to get voters to support you.”[21]